Nippon India Nifty 50 Value 20 Index Fund

All Cap

Diversified

Equity

India Defensive

Others

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

Nippon India Nifty 50 Value 20 I Reg Gr is an equity index fund which captures India's ₹200+ trillion market capitalization through a value-tilted strategy, deploying capital across financials, energy, and technology to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has outperformed its benchmark in 10 out of the past 12 years, demonstrating resilient earnings delivery and downside protection characteristics.

Value-Tilted Construction

The fund's value-oriented approach, overweighting attractively valued financial services and energy stocks like HDFC Bank and Reliance Industries, differentiates it from traditional market-cap weighted peers.

Cyclical Upside Potential

With a relatively inexpensive valuation and exposure to sectors geared towards India's economic recovery, the fund could benefit from an uptick in capital expenditure and earnings revisions.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+10.0% vs +8.7% benchmarkSince Inception

+5.1% vs +6.3% benchmark3Y Annualized

+6.9% vs +6.5% benchmark5Y Annualized

Nippon India Nifty 50 Value 20 Index Fund

Benchmark Index

Benchmark Performance Comparison

Nippon India Nifty 50 Value 20 Index Fund

NIFTY 50

Risk Profile

Standard Deviation13.9%

Maximum Drawdown-18.6% | Oct 2024

Sharpe Ratio-0.74

Detailed Risks

Market Risk

Prolonged economic slowdown in India could depress corporate earnings, undermining fund's value tilt.

Liquidity Risk

Concentrated large-cap exposure leaves fund vulnerable to liquidity shocks during volatility spikes.

Concentration Risk

Outsized exposure to financials and energy sectors amplifies downside from regulatory tightening.

Specific Strategy Risk

Value strategy underperforms if economic recovery lags, extending growth stock outperformance.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to India's most fundamentally resilient large-cap companies. This value-focused approach targets stocks trading at discounts to their intrinsic worth, with the potential to re-rate as the market recognizes their quality.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with consumption and earnings recovery gaining traction. This normalization backdrop, supported by trends like reviving capex and credit growth, offers an attractive entry point. However, risks such as margin pressures and cyclicality in sectors like consumer discretionary and industrials warrant a balanced approach.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current environment through its diversified exposure across consumer, financial, and technology sectors. The portfolio's holdings in market leaders combined with a flexible, risk-adjusted approach appears aligned with the mid-cycle dynamics. With around 70 holdings, the strategy offers a blend of growth and defensive qualities.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach offers exposure to resilient businesses with pricing power and sustainable growth trajectories.

High-Level Investment Process

Sourcing: The strategy appears to favor companies with strong franchises, healthy balance sheets, and attractive growth runways across a range of sectors. Selection: The process suggests a preference for businesses with defendable market positions, recurring revenue streams, and the ability to compound cash flows over an extended period. Construction: Portfolio construction is consistent with a focus on diversification across sectors and market capitalizations while maintaining a bias toward quality characteristics.

Portfolio Holdings Overview

SectoralAllocation

Capital Goods3.61%

Financial Services40.76%

Energy & Infra5.42%

Services3.7%

Utilities8%

Technology22.66%

Consumers15.85%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

ICICI Bank LtdFinancial Services14.61%

State Bank of IndiaFinancial Services10.63%

Infosys LtdTechnology9.94%

Axis Bank LtdFinancial Services8.73%

ITC LtdConsumers7.28%

Kotak Mahindra Bank LtdFinancial Services6.77%

Tata Consultancy Services LtdTechnology6.06%

NTPC LtdUtilities4.54%

Maruti Suzuki India LtdConsumers4.19%

Hindalco Industries LtdCapital Goods3.60%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Jitendra Tolani

Mr. Jitendra Tolani has experience of 20 years. Manages 87 funds at Nippon Life India Asset Management Ltd with an AUM of approximately ₹1,051 Cr

20 years

Combined Team Experience

₹ 1,051 Cr

Assets Under Management

CW Expert Take

Nippon India focuses on fundamental research with contrarian tendencies. Their investment teams are known for taking differentiated positions backed by bottom-up analysis. The fund house demonstrates flexibility in asset allocation while maintaining risk discipline—useful across their equity growth strategies and duration management in debt.

Firm Overview

Total AUM₹6,44,104.16 Cr

Investment Philosophy & Approach

Disciplined Approach

Nippon Life employs a systematic, rules-based investment process.

Risk Management

Risk management is embedded in portfolio construction methodology.

Long-Term Focus

Strategies aim to deliver consistent returns over cycles.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.67%

Regulatory & Tax Information

INF204KB19Y8

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)